I would have to say that applecare has been totally worth it for me. Unfortunately it doesn't cover accidental damage (yippie for my homeowners insurance because accidental damage is covered on my computers). I bought my macbook in fall 2007, and though I love my Macbook and will never go back to a PC again I have had more issues with it then any other laptop I have owned 🙁 I have had the hard drive die, issues with keyboard, and cracks in the casing on a few occasions. And thats all within a year of me having my Macbook I can only imagine what is going to happen next lol.
Apple is for the most part really great with repairs, they even sent me a brand new machine last week since I have brought my laptop in so frequently (woohoo they upgraded my processor, ram, HD capacity, renewed applecare too so I am a wicked happy camper). I know it may seem expensive, some people have no issues with their Macbooks but I would play it safe.